The current literature provides compelling evidence suggesting that an eddy-resolving (as opposed to eddy-permitting or eddy-parameterized) ocean component model will significantly impact the simulation of the large-scale climate, although this has not been fully tested to date in multi-decadal global coupled climate simulations. The purpose of this paper is to document how increased ocean model resolution impacts the simulation of large-scale climate variability. The model used for this study is the NCAR Community Climate System Model version 3.5 (CCSM3.5) -the forerunner to CCSM4. Two experiments are reported here. The first experiment (i.e., control) is a 155-year present-day climate simulation using a 0.5Âș atmosphere component (zonal resolution 0.625Âș meridional resolution 0.5Âș) coupled to ocean and sea-ice components with zonal resolution of 1.2Âș and meridional resolution varying from 0.27Âș at the equator to 0.54Âș in the mid-latitudes. The second simulation uses the same atmospheric model coupled to 0.1Âș ocean and sea-ice component models. The simulations are compared in terms of how the representation of smaller scale features in the time mean ocean circulation and ocean eddies impact the mean and variable climate. In terms of the global mean surface temperature, the enhanced ocean resolution leads to a ubiquitous surface warming of about 0.2 o C. The warming is largest in the Arctic and regions of strong ocean fronts and ocean eddy activity (i.e., Southern Ocean, western boundary currents). The Arctic warming is associated with significant losses of sea-ice in the high-resolution simulation. The SST gradients in the North Atlantic, in particular, are better resolved in the high-resolution model leading to significantly sharper temperature gradients and associated large-scale shifts in the rainfall. In the extra-tropics, the interannual sea surface temperature anomaly (SSTA) variability is increased with the resolved eddies, but decreases in the deep tropics (i.e., the variance of El Niño and the Southern Oscillation is reduced). Changes in global SSTA teleconnections and local air-sea feedback are also documented and show large changes in ocean-atmosphere coupling.3